The world has changed drastically as it is rapidly shifting from a once mechanical society into now becoming fully digitized, of which includes even currencies. Or more specifically speaking, cryptocurrencies.
In fact, people’s interest in cryptocurrencies, which are also known as cryptos, is growing very fast.
Now, even retail institutions and megacorporations are heavily invested in crypto. This happens because of the volatility cryptos bring, which makes it a great way to time the market and gain massive and exponential gains from your initial capital.
With this, it makes sense to expect that cryptocurrencies are going to seep into the nooks and crannies of our modern society including the digital commercial world of ecommerce.
In this article, we are going to dive deep into the role that cryptocurrencies may bring to ecommerce and how it can sync in with the current needs and interests of the market today.
What are cryptocurrencies?
Cryptocurrencies are digital assets that use the newly-invented Blockchain technology that seeks to implement a fully decentralized control to all of its users.
Cryptocurrencies come in different forms, such as how fiat currencies do with the US Dollar, British Pound, and Chinese Yuan. In crypto, there are Bitcoin, Ethereum, Ripple, and Binance Coin as the most popular ones.
What’s more is that these cryptocurrencies are created from a series of codes from professional programmers and app developers. Each cryptocurrency or coin also has its own tokenomics which is basically how that specific crypto will function.
This is where the supply, way of mining and creation, as well as the utility of the crypto coin depends on.
What’s also great about cryptocurrencies is that you cannot create an infinite supply of them, which is totally the opposite of fiat currencies.
This means that there is no inflation going on and the value of the coin won’t decrease in the long run, given that it maintains a stable market valuation.
Most Popular Cryptocurrencies
Bitcoin (BTC)
Bitcoin is considered as the king of cryptocurrencies because it is the first crypto that was created.
It first came out in 2009 after an unknown person who identified himself as Satoshi Nakamoto.
Although many people treat this name as a single person, there are also others that believe this can be a group of people or even a whole company or institution that disguises itself as a single person with the name.
There are thousands of cryptocurrencies today, and all of them mainly depends on the value of Bitcoin. If Bitcoin’s value increases, the entire crypto market’s value also increases generally.
The same thing happens when it goes down as it also brings the entire market down. It is also treated as digital gold as many people merely hold their Bitcoin assets for years and wait for them to increase in valuation.
More and more ecommerce institutions are diving into Bitcoin as it is the frontliner and leader of the market. This also serves as a new avenue for ecommerce retailers to acquire a new asset class, in this case, in digital and decentralized form.
Ethereum (ETH)
If Bitcoin is considered as the king of crypto or what many would say digital gold, Ethereum would then be fitting to be called as digital silver.
Unlike Bitcoin, Ethereum has way more uses instead of just serving as a store of value. Every crypto coin runs on a specific Blockchain network.
In this case, Ethereum is the Blockchain network while Ether is their coin which is then used as a currency. This is where ecommerce comes in.
The world of ecommerce can leverage cryptocurrencies and use them to initiate payments and even create smart contracts which they can use to improve their operations and track their individual processes without the need of a centralized system.
Binance Coin (BNB)
Then there’s Binance coin with its ticker symbol being BNB. BNB has grown in value exponentially over the past year because of its wide functionality.
Binance is the network while BNB is the coin which they use for payments, trading of NFTs, and many more.
Ecommerce stores and online shops can greatly benefit from BNB because of the very low transaction costs it has amounting to only a few cents for each transaction.
Top Benefits of Cryptocurrencies for E-commerce Stores
Fast transactions
One of the best things ecommerce stores can get from cryptocurrencies is that they don’t have to wait for hours or even days for a payment transaction to push through.
Instead, they just have to wait a few minutes or even just some seconds for the wireless payment transfer to successfully finish. This depends on the cryptocurrency or Blockchain network that you are using.
Expand the market
Another nice thing about cryptocurrencies in an ecommerce store is that it brings you to the 21st century where decentralized ledgers and digital processes have become the norm. This is what the world of crypto is all about.
Hence, holding crypto assets will surely attract a wider market, one which consists mostly of early adopters. Note that early adopters and disuptive technologies such as cryptocurrencies and Blockchain technology are the most lucrative ones.
Better security
Cryptocurrencies are named as such because of their encrypted nature. This makes it virtually impossible to forge such assets or even steal them.
Low transaction fees
Cryptocurrencies run on Blockchain technology which app developers have meticulously designed to ensure utmost efficiency in initiating transfers of digital assets.
Depending on the Blockchain you are using, let’s say the Bitcoin network, you can expect to shell out only a few dollars for every transaction.
The Binance network is the best choice for ecommerce, though, as every transaction is just priced at around a few cents depending on the traffic congestion. This makes Binance network the ideal choice if you are in the world of ecommerce.
Conclusion
Concluding all of this, you can easily see that the times have changed. And it isn’t just enough for your business to go online.
You need to dive fully into the digital realm and infuse into cryptocurrencies. There’s no other way for the world’s financial sector to go than straight into cryptocurrencies.